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How To Apply For Student Loan For Medical Students? – Must Check!

Medical Students

Whether you’re pursuing an MBBS in your home country or abroad, let’s face the fact that it has its own set of pros and cons. Studying MBBS today has evolved a great deal, no doubt. In fact, if you were to look at it 50 years ago, you would be taken aback by the kind of experience and training students are getting today when compared to before. With each year passing by, the demand for doctors and general practitioners keeps increasing, causing a hike in the tuition fees for pursuing medicine. Moreover, with options available for students to pursue their courses abroad, exorbitant tuition fees have become an issue. As a result, students resort to medical school loans to pursue their MBBS courses. Today, in this article, you will find everything you need to know about a student loan to study abroad for medical students.

Cost Of Pursuing Medicine

As mentioned before, if you were to look at an MBBS course 50 years ago, things would have been different. You can refer to the chart below to look at the scenario of the tuition fees at some of the top medical schools in the year 1970 versus now.

student loan for medical students

Source: 2020 Medical Costs

The hike in the tuition costs of pursuing an MBBS is clearly visible. Studying MBBS before required students to pay an amount within the range of USD $816 to USD $1,140 approximately. Today, students have to pay an average amount of USD $60,000 to survive their medical schooling. While scholarships for MBBS students exist, not all students are eligible for scholarships and there’s a likely chance that the scholarships will fund you only partially. That’s when a student loan for medical students comes into the picture. 

Are You Eligible For An Education Loan For MBBS?

Before we proceed to details regarding your education loan, let’s quickly check if you’re eligible for securing medical student loans.

  1. Your academic profile has to reflect excellent performance throughout your academic career. This means that if you have backlogs in your academic profile, you will not be deemed eligible for a student loan for medical students.
  1. Usually, secured overseas education loans are the main source of an education loan for MBBS. And for secured loans, you will have to pledge collateral as security, the value of which should exceed your actual education loan requirements.
  1. If you have a strong financial background, you’re lucky because you can be named as co-applicants/co-borrowers for medical school student loans.
  1. If you plan on pursuing an MBBS course in countries like China and Ukraine, there are a special set of rules and regulations. For example, you may be required to take a country deviation to be able to fund your MBBS courses in such countries.

Types Of A Student Loan For Medical Students

Based on the need for collateral security, you can receive either 

  • A secured education loan, or
  • An unsecured educational loan

Let me elaborate on this for you to make it clear.

Secured Education Loan: Secured loans are those education loans that need a guarantee in the form of collateral from the borrower (or co-applicant). Since the bank’s risk is much lower, they have lower interest rates and are easier to get. Why is there a need for security for an education loan? When the loan becomes a Non-Performing Asset, the bank uses it, which occurs when the applicant faces an education loan default.

Unsecured Education Loan: An education loan is called an unsecured loan that does not ask the borrower to promise cover, i.e., collateral is not needed. Besides the non-requirement of collateral, there is another benefit to unsecured education loans. Since the documentation is less complicated, their processing time is rapid.

Do NBFCs Grant A Student Loan For Medical Students?

If you have excellent academic records, you will be accepted into prestigious universities in countries such as the USA, UK, Canada, etc. At such times, you will not find it difficult to secure an education loan from banks. Now, the problem arises when students come to private lenders asking for unsecured education loans to fund their MBBS courses in countries like China and Ukraine, which are not present on their list of countries. This is why many NBFCs do not lend unsecured education loans for MBBS courses. This leaves most of the candidates with a few choices to fund their MBBS course abroad – Secured education loans from government banks or you can try your hand at an unsecured loan from private banks.

Types Of Collateral Security Required For Secured Loans

While opting for a secured student loan for medical students, pledging collateral security is mandatory. Now there are 2 types: Tangible collateral security and intangible collateral security. Here is a list of the different categories of collateral that are accepted by government banks for an education loan for MBBS:

Immovable Property: An immovable property is one of the most frequently pledged categories of assets as collateral against an MBBS education loan. This category involves assets like a house, a residential flat, a plot with defined boundaries, an independent house, a non-agricultural land, etc. come under this category.

Liquid Security: Government banks do accept liquid assets as collateral against MBBS student loans. Assets such as Fixed Deposits, government bonds, life insurance policies from government-approved lenders, etc. are accepted by government banks.

Third-Party’s Assets: This provision is only applicable to government banks. In case a candidate does not possess any of the above assets or if their values do not cover the required education loan amount, then they can pledge a third party’s assets as collateral security against government student loans. This third party essentially refers to individuals who are not part of the candidate’s immediate family. For e.g., uncle, aunt, friends of the candidate or the primary co-applicant, etc.


Q1. How can I get MBBS education loan in abroad?

To get an education loan for MBBS abroad, you can contact a bank or financial institution that offers such loans. You will need to provide them with documentation such as your admission letter, academic transcripts, and financial statements. The bank will then assess your eligibility and determine the loan amount and interest rate.

Q2. How can I get 100% scholarship for MBBS in abroad?

There are a few ways to get a 100% scholarship for MBBS abroad. One way is to apply for government scholarships offered by your home country or the country where you want to study. Another way is to apply for scholarships offered by universities and colleges. Finally, you can also apply for scholarships offered by private organizations and foundations.

Q3. Which country is best for MBBS scholarship?

There are many countries that offer scholarships for MBBS students. Some of the most popular countries include the UK, USA, Canada, Australia, and New Zealand. However, the best country for you will depend on your individual needs and preferences.

Q4. How much money required for MBBS in abroad?

The cost of MBBS abroad can vary depending on the country where you study and the university you choose. However, you can expect to pay around INR 1.5 to 3 crores for the entire course.

Q5. Is there any scholarship for MBBS in abroad for Indian students?

Yes, there are many scholarships available for Indian students who want to study MBBS abroad. Some of the most popular scholarships include the Indian Council for Cultural Relations (ICCR) Scholarship, the Commonwealth Scholarship, and the Chevening Scholarship.

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Medical Students

How To Apply For Student Loan For Medical Students? – Must Check!

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